The Ministry of Heavy Industries and Public Enterprises has constituted a ‘Joint Task Force' between the Department of Heavy Industry (DHI) and Confederation of Indian Industry (CII) on the capital goods sector with an objective to realise the potential of domestic capital goods under the ‘Make in India' theme. 

The Joint Task Force will take up issues faced by the industry with a view to evolving a roadmap for the Indian capital goods sector. One of the key elements of this process is formulation of a National Capital Goods Policy over the next few months. The initial framework for the National Capital Goods Policy has been articulated in a Base Paper which the public consultation is pivoting around.

Capital Goods comprises of sub-sectors such as textile machinery, machine tools, electrical and power equipment, plastic machinery, construction equipment, process plant equipment and dies, moulds and press tools.

With a total market size of US$ 92 billion and production valued at US$ 32 billion, Capital Goods sector today, contributes to 12 per cent of India's manufacturing output. On the export front, India's share in global exports from the sector is currently very low, ranging between 0.1 per cent - 0.6 per cent across various sub-sectors. In contrast, in countries like China, Germany, Japan, Korea this range is between 7 per cent - 16 per cent depending on the sub-sector.

Commenting on the public consultation underway for the National Capital Goods Policy, Chandrajit Banerjee, Director General, CII expressed confidence that "this first ever policy for the sector would act as a catalyst and game-changer for this critical industry.

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